SPRING CLEAN YOUR FINANCES by Lee Hulse

Spring has arrived and there is so much to celebrate. Daffodils and azaleas and dogwoods are in bloom. Temperatures are warming. We are in the midst of March madness and Easter and Spring break are just around the corner.  April is also Financial Literacy month!

So what does that mean and why is there a month for financial literacy?  In March 0f 2003, Congress designated April as Financial Literacy month to raise awareness about financial literacy and teach Americans healthy financial habits.  Personal finance and economics are not consistently offered in school and many Americans transition into adulthood without the basic skills to handle their finances and plan for their futures.  

The National Financial Educators Council defines financial literacy as “possessing the skills and knowledge of financial matters to confidently take effective action that best fulfills an individual’s personal, family and global community goals.”  The General Office of Accounting offers this definition.  “The ability to make informed judgements and to take effective actions regarding the current and future use and management of money.  It includes the ability to understand financial choices, plan for the future, spend wisely and manage the challenges associated with life events such as a job loss, saving for retirement, or paying for a child’s education.” Both definitions have a unifying component; the importance of having the skills and knowledge to make informed decisions. Despite the dedication of an entire month to the subject, progress is slow.  

  ~ According to the Washington Post ~

A record 7 million Americans are three months 

behind on car payments.

 ~ In 2018, CNBS reported ~

 Only 39% Americans have the 

ability to cover a $1,000 emergency.  

 ~ A Bank Of America survey ~

Illustrated that only 16% of millennials are optimistic 

about their financial futures and 54% responded that 

they are worried about repaying student loans.

It’s not all doom and gloom. We all have the right and the ability to do better and take control of our financial futures.  We can track our spending, make choices between wants and needs, live within our means and educate ourselves.  We should never be hesitant to ask questions of our bankers and insurance providers and mortgage lenders.  We can read the fine print on our credit card statements.  We can read personal financial magazines and research respected websites such as MyMoney.gov, The FDIC, Consumer Financial Protection Bureau and the Federal Trade Commission, and participate in financial literacy classes.  

So, let’s all celebrate all the great things April brings, including financial literacy month. Let’s take control of the future! And if you are in the Wayne County, NC area, join Literacy and Bank On Wayne as we celebrate every Tuesday evening with FREE workshops.

Cheers!  Here’s to a financially stable future.